- August 20, 2018
- Posted by: Aman Thakral
- Category: General
Well, being in sales, you must realize the value of finding new ways, almost every day to increase revenues. Isn’t it always on the top of your mind?
As it is about growing sales, all that numerous salespeople are concerned about is to gain new customers & clients, so much so that they often fail to even effectively address the requirement to retain the ones who are already on board.
Quite strangely, we are often told that it is cheaper to keep the existing customers instead of acquiring new ones. Thus, many come to think it is better to get new customers. However, that one thing that must be timely realized it is to address the need to retain the ones the firm has already.
Why is it crucial to care about existing customers?
According to Gartner Group statistics, “80% of your company’s future revenue will come from just 20% of your existing customers.”
Well, every business ultimately requires new customers, but you must remember that the easiest, in fact, the most predictable source of new revenue is ‘what you have been ignoring since long’. It comes from your existing customers, who don’t just know your company but have already bought from you. This group can help your business attain better conversion rates, increase profits, with low cost spent on marketing.
How can you increase customer retention with CRM?
The key lies in just this one word: “Relationship”.
Nothing helps in knowing your customer better than CRM – it allows you to know who they are, how they been marketed to & how they responded. If things keep going well, you can continue selling to them and that’s when the fruitful relationship really begins.
CRM software offers the right tools that are helpful in managing the activities around customer engagement. So, let’s find how CRM can help in this work.
Tips to increase customer retention with CRM:
We all know that all we need is a good customer database in order to provide the foundation to create long-term customer partnerships. So, here let’s explore the 5 ways to do so:
Keep your VIP & Privileged customers
The best way you can ensure customer retention is by preventing them from leaving. If you view closely, there are always some signals of the customers impending departure. You simply need to recognize the key variable like product usage, purchase patterns & service calls using your CRM software. Once those signals have been captured, you need to now put certain actions in place so to stops your customers from leaving.
Target your customers with special offers
It always works to know your customers well, as then it gets easier to tailor your approach to each one of them. With CRM software, you can view the purchase history of your customers, in order to determine which kind of offer each individual will find most appealing and will increase relevance. This way customers will always have your brand in their minds.
Reward all of your most profitable customers
With the information that you collected in your CRM Software, it gets easier to reveal which accounts of yours grab the most revenue. This way, you get to budget your time accordingly, by allocating resources where the return will be most. Simply create a list of your most profitable customers and then export this list from your CRM software. Then begin to follow up & let them know regarding rewards and incentives so as to make them feel special, so they can continue to be your profitable customers.
Personalize your follow-ups
So, a relationship is what is established between people, and with CRM software, it gets easier to not see your customer as just a number but also a person. As you complete the required fields while registering a new contact, better personal notes & other information should be used in order to personalize the outreach. By having all of these bits of information with you, it gets easier adjusting your follow-up strategies as per that.
One just can’t undermine the effects of personalization, with even a recent research in the UK found out that personalization with the use of user preference, past purchases & another crucial information present in CRM software ensures a high impact ROI.
Schedule time with the existing customers
CRM software has a scheduling feature that enables you schedule follow-up calls/emails for you/allows you to assign the follow-up to your business team. This way, it gets possible to keep a track of your appointments as well as get done with any task right away.
Like, maybe there is a list you’re having of your customers, whom you promise to catch-up with & update them with the necessary info. However, as you look into your schedule, you find that it won’t be possible to fulfil the promise made to customers timely. So in such situation, you can assign few of your colleagues to catch-up with those customers & generate follow-up so as to appear in their diaries.
Conclusion: CRM software allows the businesses to gather & manage information on the customers, as well as manage activities around the customer-engagement strategy. Using the data provided by CRM software, you cannot just retain the customers but also keep them happy and increase profits – without any added expense to acquire any new customers.
In case, you plan to use CRM software to keep your existing customers, do get in touch, and we would be willing to offer the best help.